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Botswana’s Financial Intelligence Agency Releases Annual Report on Money Laundering and Terrorist Financing

The Financial Intelligence Agency (FIA) of Botswana has released its annual report on money laundering and terrorist financing for the year ending May 2017.

Key Findings

  • The agency received a total of 1,234 suspicious transaction reports (STRs) from financial institutions and other reporting entities, representing a significant increase from the previous year’s total of 942 STRs.
  • The FIA attributed the increase to the growing sophistication of money laundering schemes and terrorist financing activities in Botswana.

Concerns

  • The use of cash transactions, particularly in the informal sector, is a major concern for the agency. “We are concerned about the high preference for use of cash in Botswana, which makes it difficult to trace the source of funds,” said FIA Director General.
  • The increasing use of virtual assets such as bitcoins in pyramid schemes, tax evasion by informal grey import car dealers, and base erosion and profit shifting tax evasion schemes are also identified as concerns.
  • Non-resident accounts being opened in Botswana, which are then used to receive large cash transfers from abroad, is another trend of concern.
  • “These funds are often wired out to other countries almost immediately, without any value added to the Botswana leg of the transaction,” said FIA Director General.

Call to Action

  • The agency urges financial institutions and other reporting entities to remain vigilant and report any suspicious transactions to the FIA.
  • “We need the cooperation of all stakeholders to effectively combat money laundering and terrorist financing in Botswana. We will continue to work closely with our international partners to share intelligence and best practices in this area,” said FIA Director General.

About the Financial Intelligence Agency

The FIA is responsible for gathering, analyzing, and disseminating financial intelligence to support anti-money laundering and combating the financing of terrorism (AML/CFT) efforts. The agency also works closely with other government agencies, including the Botswana Revenue Authority (BURA), to combat tax evasion and other financial crimes.

Contact Information

  • Financial Intelligence Agency